<p>Why do most people (or you) prefer to work in the IBD division compared to the sales division (IB sales, full-service broker, private banker, wealth manager, etc)?</p>
<p>b/c many people feel that working in 'retail' banking isn't as prestigious as ibanking, plus ibanking generally pays more initially and later.</p>
<p>thats not to say that being a wealth manager doesn't pay, i've see people who have been working for 6 years that are makign 500k, not bad considering they work less hours and get to spend more time socializing with clients than doing real work on say, excel.</p>
<p>also exit opportunities for banking would be better. as a banker your skills in sales matter MUCH less initially (obviously later they're going to matter, especially if you want to make VP/MD and have to start bringing in business). as a wealth manager, private banker, and so on sales skills are extremely important initially. I believe most of these have programs where you've got 2 years to bring in 20 million dollars under assets. If you dont bring in assets you're fired. </p>
<p>Working in IB Sales is a little different. I've heard these guys can make a killing and still work market hours, and i'd say in terms of prestige they'd be above wealth managers and all that. Again you'd need general sales skills initially for this job too.</p>
<p>So basically the advantage of ibanking is little sales required and a more stable career initially?</p>
<p>I've heard that financial salesmen have almost unlimited income potential, and after a couple years (if they survive) the job is very relaxing.</p>
<p>there are many industries that can be lucrative and easy to break into like private banking, insurance sales, etc. I know people that are making an easy 300k after 5 years doing absolutely nothing, they are just offering great service to their initial clients so that they will stay and they are done. After you accumulate a certain number, the maintenance is easy if your have great service priorities in order to retain them, and many people have put it as an early working retirement. </p>
<p>But remember, not all wealth management and private banking jobs are commission.</p>
<p>And 20 million is pretty easy to accomplish,at least a think so, my mom has the smallest client list she has ever had since she will be retiring in a few years, but she still easily has a client base worth around 20 billion, and that is on the small side since some of her clients before consisted of the hiltons, milken and various others. Nice thing you also meet various personalities, such as her previous clients that have played for the angels, won the lottery and developed humulin</p>
<p>"And 20 million is pretty easy to accomplish,at least a think so, my mom has the smallest client list she has ever had since she will be retiring in a few years, but she still easily has a client base worth around 20 billion, and that is on the small side since some of her clients before consisted of the hiltons, milken and various others."</p>
<p>20 million is not that easy for a new kid out of school to build within 2 years. My assumption is well over 50% would get fired for not meeting that goal.</p>
<p>It's seen as far more prestigous (this doesn't mean it necessarily is... it's just a perception) since an ibanker can break into b school after only two years and it's one of the highest paying (guaranteed) salaries straight from undergrad. The potential in PWM is indeed limitless and yes, the successful ones make anywhere from the mid-six figures to seven, but bear in mind this is a very select few. Also, PWM is extremely hard to break into as a fresh college grad as how do you convince someone in their 50's that you know what to do with money (since you have littler experience)?</p>
<p>It's a better life than ibanking and CAN pay more, but in some ways, its even more difficult to succeed.</p>
<p>If you cant hit 20 million in private banking/wealth management in 2 years, than i am sorry, you really arent cut out for that sort of business</p>
<p>"If you cant hit 20 million in private banking/wealth management in 2 years, than i am sorry, you really arent cut out for that sort of business"</p>
<p>I'm not in the business, so I'm not going to try and debate it. (though I do know people in the business at Morgan Stanley and Lehman Bros). Exactly as themegastud said, who would trust a kid straight out of college with their money? Only the unsophisticated (who obviously has little money) investor will be investing with a kid. I'm sorry but when your 23 you won't be nailing 60 year old's with 10 million dollars as clients, they have better option than a kid.</p>
<p>you can join an existing group of FA's and bypass the whole young age thing.</p>
<p>some people though do indeed work on their own, it's a matter of just showing you're professional and marketing the right things to them. The business isn't rocket science, everyone generally markets the same things. We pitched 6 month CDs and money market funds a lot, these things are very standardized and structured solely around the rates. So it's not like your experience would show.</p>
<p>My supervisor actually rarely met clients face to face, he was able to conduct most things over the phone, via e-mail, and fax. The only time you'd really need to meet clients would be for very big and complex pitches. Getting a client to invest their retirement in a CD wouldn't need a face to face.</p>
<p>swanson you obviously are clueless about what private banking entails and what private wealth managers do. Private bankers are like client support, they make sure everything goes ok for them and make sure they get the services they need. They are not managing their money. Private wealth managers, in essence their is no such thing, that would be financial advising, but PWM can more often be referred to as wealth strategists which includes investing, but more in terms of investing with a goal to maximaize tax benifits. </p>
<p>So please before making any references, please make sure you no what your talking about</p>
<p>I agree with dfca, I think the ideal way to become a finanical advisor out of college (working for a firm like ML, MS, Smith Barney, ect) is to first intern for a big group so you get contacts at the office, you will also understand and should be able to figure out if you like the business or not. It also gives you a chance to build up some potential client leads that you can call on when you start up full time. </p>
<p>A lot of business is done over the phone but if you want to bring in big accounts or work with people on 'total wealth managment' they are gona want to come into the office especially if you are in their town.</p>
<p>If you join an already sucessfull team of advisors (although you wont make at much as first becuase you have to pay them a percent of your comission) they can give you some of their crappy small accounts that they dont want to service, help you with what to say and sell to clients, and help pay for seminars and other markting you want to do. But most importantly, they can sit in on client pitches with you to have the appearance of older people.</p>
<p>Another thing that helps if your with a group is you can tell clients on the phone we as a group have 60 years of wealth managment experience, 500m aum, exct as opposed to i just graduated from college with a degree in finance.</p>
<p>another thing i was thinking about ut not sure on was how much being an ivy grad helps. I know that most or at least a lot of the really sucessfull retail brokers didn't go to ivys (i think that this is less true if you are working at lehman, goldman or one of the more exclusive firms) but i think it might help if you tell clients, yea i graduated from yale and harvard business school (i think you could get bigger and better clients with that repuation, in addition to the contacts you make there)</p>